"The assumptions underlying Cost-Volume-Profit Analysis make it a difficult method to apply in real-world settings".

Discuss this statement and conclude on the extent to which you agree with it. Use examples to illustrate your answer.

Setting prices for service organisations

"For organisations that provide services rather than tangible goods or products, setting selling prices can be very difficult. This is because a high proportion of the costs of such organisations are usually indirect. This makes it difficult to determine reliably the cost of service provision and apply pricing related models such as cost-plus pricing and target costing."

Discuss this statement and conclude on the extent to which you agree with it. Use examples to illustrate your answer.